Banks’ Seduction of Their Regulators to Continue
For years, I have made the deliberately exaggerated statement: if banks disclosed their current exposure details, bank examiners would never have to... Read More
What is the Most Efficient Way to Regulate Wall Street?
According to the Federal Reserve’s Vice Chairman in charge of bank supervision, Efficiency has to be equally important with safety and soundness... Read More
Gary Gorton and the Panic of 2007
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As I was reading Professor Gorton’s article for the 2008 Jackson Hole conference, I realized it confirms everything I have said about... Read More
Is Transparency Too Complex for Economists to Understand?
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Over the last couple of decades, it has become increasingly apparent to me the concept of transparency is too complex for Economists.... Read More
ECB Discovers Markets Need Transparency to Work
The ECB resorts to transparency in an effort to get the market for bad loans the EU banks would like to sell... Read More
Office of Financial Research: Doesn’t Even Work in Theory
Since it was created as part of the 2010 Dodd-Frank Act, the Office of Financial Research has shown why it shouldn’t exist... Read More
How Safe are Tim Geithner’s Central Counter-parties?
The Office of Financial Research recently published a working paper on the question of how safe are the derivative clearinghouses that regulators set... Read More
Gordon Brown: I save the world, except …
In what appears to be an endless stream of books by financial crisis policymakers, the UK’s Gordon Brown trots out his memoir.... Read More
Does Size Alone Matter?
The Office of Financial Research looked into the question of does bank size alone tell the whole story in measuring systemic importance.... Read More
Failure of the Experts has Lead to Fantasy Politics
The other day the Peterson Institute hosted a conference on “Rethinking Macroeconomic Policy“. The speakers were a veritable who’s who of the... Read More
Economists: 2008 Financial Crisis Opacity Based
The University of Chicago’s Booth School asks a panel of Economists for their opinion on a variety of topics. The IGM Economic... Read More
How Much Financial Regulation is Enough?
As we passed the tenth anniversary of the financial crisis, the discussion has turned to the appropriate level of regulation and supervision... Read More
The Reasonable Investor and Disclosure
One of the primary tools used by the Opacity Protection Team for limiting disclosure is to hide behind the Supreme Court’s 1976... Read More
“The Big Lie is a Potent Tool”
Over the last several days, I have been sharing my thoughts (see here and here) on the Bank of England’s Andrew Haldane’s... Read More
Deception “has to happen in a financial crisis”
A few days ago, I wrote a post on the Bank of England’s Andrew Haldane confessing the central bank engaged in deception (some... Read More